GBP/USD Slides as Fed Hikes to 3.75%-4.0% Rate Range

The Federal Reserve's decision to lift rates to a 3.75%-4.0% range has reignited dollar demand across G10 pairs, with GBP/USD bearing the brunt of renewed greenback strength. The move confirms the Fed remains committed to a restrictive stance even as other central banks signal caution.

For sterling, this widens the policy divergence narrative against the Bank of England, whose more measured tightening path leaves cable vulnerable to further downside. Traders are now repricing rate expectations, with the interest rate differential becoming the dominant driver of near-term price action.

Until the BoE offers a clearer hawkish counter-signal, GBP/USD risks remain skewed to the downside as dollar momentum builds across the broader currency complex.